Maximus, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Segment Information

Segment Information

6 Months Ended

Mar. 31, 2020

The table below provides certain financial information for each of our business segments. We operate our business through three segments.

•Our U.S. Health and Human Services Segment provides a variety of business process services such as program administration, appeals and assessments services, and related consulting work for U.S. state and local government programs. These services support a variety of programs including the Affordable Care Act (ACA), Medicaid and the Children’s Health Insurance Program (CHIP). We also serve as administrators in state-based welfare-to-work and child support programs.

•Our U.S. Federal Services Segment provides business process solutions, including program administration, appeals and assessment services, as well as system and software development and maintenance services for various U.S. federal civilian programs. This segment also contains certain state-based assessments and appeals work that is part of the segment's heritage within the Medicare Appeals portfolio and continues to be managed within this segment.

•Our Outside the U.S. Segment provides business process solutions for governments and commercial clients outside the U.S., including health and disability assessments, program administration and case management for employment services and other work-support programs. We deliver services in the United Kingdom, including the Health Assessment Advisory Service (HAAS), the Work & Health Programme and Fair Start; Australia, including jobactive and the Disability Employment Service; Canada, including Health Insurance British Columbia and the Employment Program of British Columbia; Italy, Saudi Arabia and Singapore.


	Three Months Ended March 31,											Six Months Ended March 31,
(dollars in thousands)	2020		% (1)	2019		% (1)	2020		% (1)	2019		% (1)
Revenue:
U.S. Health & Human Services	$	308,698		$	290,737		$	620,979		$	584,950
U.S. Federal Services	393,391			289,736			759,962			506,723
Outside the U.S.	116,046			156,047			255,423			309,466
Total	$	818,135		$	736,520		$	1,636,364		$	1,401,139
Gross profit:
U.S. Health & Human Services	$	85,454	27.7%	$	86,260	29.7%	$	175,044	28.2%	$	174,291	29.8%
U.S. Federal Services	76,958		19.6%	60,696		20.9%	147,779		19.4%	108,681		21.4%
Outside the U.S.	(9,314)		(8.0)%	22,466		14.4%	5,725		2.2%	45,715		14.8%
Total	$	153,098	18.7%	$	169,422	23.0%	$	328,548	20.1%	$	328,687	23.5%
Selling, general & administrative expense:
U.S. Health & Human Services	$	39,239	12.7%	$	29,400	10.1%	$	70,637	11.4%	$	61,539	10.5%
U.S. Federal Services	46,726		11.9%	31,104		10.7%	85,965		11.3%	57,736		11.4%
Outside the U.S.	17,404		15.0%	17,992		11.5%	33,457		13.1%	36,800		11.9%

Other (2)	3,484		NM	(394)		NM	4,021		NM	1,698		NM
Total	$	106,853	13.1%	$	78,102	10.6%	$	194,080	11.9%	$	157,773	11.3%
Operating income:
U.S. Health & Human Services	$	46,215	15.0%	$	56,860	19.6%	$	104,407	16.8%	$	112,752	19.3%
U.S. Federal Services	30,232		7.7%	29,592		10.2%	61,814		8.1%	50,945		10.1%
Outside the U.S.	(26,718)		(23.0)%	4,474		2.9%	(27,732)		(10.9)%	8,915		2.9%
Amortization of intangible assets	(8,934)		NM	(9,519)		NM	(18,022)		NM	(14,977)		NM



Other	(3,484)		NM	394		NM	(4,021)		NM	(1,698)		NM
Total	$	37,311	4.6%	$	81,801	11.1%	$	116,446	7.1%	$	155,937	11.1%

(1) Percentage of respective segment revenue. Percentages not considered meaningful are marked “NM.”

(2) Other selling, general and administrative expenses includes credits and costs that are not allocated to a particular segment, including the costs for actual and potential acquisitions of other businesses.

Identifiable assets for the segments are shown below (in thousands):


	March 31, 2020		September 30, 2019
U.S. Health & Human Services	$	580,487	$	500,641
U.S. Federal Services	939,824		795,553
Outside the U.S.	210,095		234,769
Corporate	230,000		214,769
Total	$	1,960,406	$	1,745,732